Many entrepreneurs have voiced their concerns over Brexit, with Richard Branson among them, but despite the uncertainty that lies ahead, VC investors are still keen to make strong investments.
According to the London mayor’s promotional company London & Partners, tech companies in the capital have been on the receiving end of a record level of venture capital investment.
The research found that VC investors injected £1.1bn into London tech businesses in the first half of 2017. Meanwhile, looking at the UK overall, the figure from VC investors climbs to £1.3bn.
“The Brexit vote has understandably created some uncertainty but it is no surprise to see that London continues to attract more than double the amount of investment than any other European city,” Laura Citron, CEO of London & Partners.
“The fundamental strengths of London as a centre for technology and business have not changed and we have everything companies need to be successful: policy makers, finance, infrastructure, world-class universities and talent.
“This year’s record investment levels show that London’s tech sector continues to thrive and remains open to investment from all over the world.”
The £1.1bn from VC investors is more than four times the amount from January to June 2013, and tops all six-month periods over the past ten years, the firm revealed.
Some of the key companies absorbing cash from VC investors include VR business Improbable, which secured £388m, as well as Funding Circle, Zopa and Monzo, fintech firms that respectively received £82m, £32m and £22m.
Additionally, London has been Europe’s top tech hotspot for global VC investors since the Brexit vote, outpacing Dublin, Paris and Amsterdam.
Since the EU referendum result was revealed, London companies have secured £1.8bn of VC funding over 544 deals – more than twice the £775m invested in Berlin, which placed second for VC investors.
On a UK-wide level, Britain’s tech businesses have secured £2.39bn since the vote – that’s more than Germany, France and the Netherlands altogether.
Looking at private equity investment, London tech firms secured £4.5bn of investment over 34 deals in the first six months of 2017, rising to £5.3bn for UK companies, both of which are also new records.
As for mergers and acquisitions, there has been £1.8bn worth of activity in London over the period, up to £3.7bn across the UK.
Check out the charts in full below: